Pacific Forum CSIS Comparative Connections A Triannual E-Journal on East Asian Bilateral Relations edited by Carl Baker Brad Glosserman January – April 2015 Vol. 17, No.1 May 2015 http://csis.org/program/comparative-connections Pacific Forum CSIS Based in Honolulu, Hawaii, the Pacific Forum CSIS operates as the autonomous Asia- Pacific arm of the Center for Strategic and International Studies in Washington, D.C. Founded in 1975, the thrust of the Forum’s work is to help develop cooperative policies in the Asia- Pacific region through debate and analyses undertaken with the region’s leaders in the academic, government, and corporate arenas. The Forum’s programs encompass current and emerging political, security, economic/business, and oceans policy issues. It collaborates with a network of more than 30 research institutes around the Pacific Rim, drawing on Asian perspectives and disseminating its projects’ findings and recommendations to opinion leaders, governments, and publics throughout the region. An international Board of Governors guides the Pacific Forum’s work. The Forum is funded by grants from foundations, corporations, individuals, and governments, the latter providing a small percentage of the forum’s annual budget. The Forum’s studies are objective and nonpartisan and it does not engage in classified or proprietary work. Comparative Connections A Triannual E-Journal on East Asian Bilateral Relations Edited by Carl Baker and Brad Glosserman Volume 17, Number 1 January – April 2015 Honolulu, Hawaii May 2015 Comparative Connections A Triannual Electronic Journal on East Asian Bilateral Relations Bilateral relationships in East Asia have long been important to regional peace and stability, but in the post-Cold War environment, these relationships have taken on a new strategic rationale as countries pursue multiple ties, beyond those with the US, to realize complex political, economic, and security interests. How one set of bilateral interests affects a country’s other key relations is becoming more fluid and complex, and at the same time is becoming more central to the region’s overall strategic compass. Comparative Connections, Pacific Forum’s triannual electronic journal on East Asian bilateral relations edited by Carl Baker and Brad Glosserman, with Ralph A. Cossa serving as senior editor, was created in response to this unique environment. Comparative Connections provides timely and insightful analyses on key bilateral relationships in the region, including those involving the US. We regularly cover key bilateral relationships that are critical for the region. While we recognize the importance of other states in the region, our intention is to keep the core of the e-journal to a manageable and readable length. Because our project cannot give full attention to each of the relationships in Asia, coverage of US-Southeast Asia and China-Southeast Asia countries consists of a summary of individual bilateral relationships, and may shift focus from country to country as events warrant. Other bilateral relationships may be tracked periodically (such as various bilateral relationships with Australia, India, and Russia) as events dictate. Our Occasional Analyses also periodically cover functional areas of interest. Our aim is to inform and interpret the significant issues driving political, economic, and security affairs of the US and East Asian relations by an ongoing analysis of events in each key bilateral relationship. The reports, written by a variety of experts in Asian affairs, focus on political/security developments, but economic issues are also addressed. Each essay is accompanied by a chronology of significant events occurring between the states in question during the four-month period. A regional overview section places bilateral relationships in a broader context of regional relations. By providing value-added interpretative analyses, as well as factual accounts of key events, the e-journal illuminates patterns in Asian bilateral relations that may appear as isolated events and better defines the impact bilateral relationships have upon one another and on regional security. Comparative Connections: A Triannual Electronic Journal on East Asian Bilateral Relations (print ISSN 1930-5370, online E-ISSN 1930-5389) is published three times annually (January, May, and September) at 1003 Bishop Street, Suite 1150, Honolulu, HI 96813. Table of Contents Regional Overview:………………………………………………………………………………1 A Frustrating Start to 2015 for the US by Ralph A. Cossa and Brad Glosserman, Pacific Forum CSIS President Obama initiated his long-awaited (and long overdue) quest for “fast track” or Trade Promotion Authority (TPA) from the US Congress, understanding that final negotiations and eventual passage (or not) of his Asian “rebalance” economic centerpiece, the Trans-Pacific Partnership (TPP) free trade agreement, rests upon achieving TPA. Without TPP, Obama’s already tarnished leadership image will be severely damaged, his “lame duck” status will be solidified at home and abroad, and his Asian pivot will be seen not as the multidimensional strategy it was intended to be but largely a unidimensional (security) single-focused (China) strategy. Meanwhile, China continued to tarnish US and ASEAN leadership through its accelerated island-building projects in the South China Sea, while Washington’s badly managed response to China’s Asian Infrastructure Investment Bank initiative provided another (self- inflicted) wound. Washington's questions were the right ones, but its seemingly “choose between us and China” approach resulted in most US partners and allies choosing Beijing. Finally, US- DPRK and North-South relations went through cycles of hope and despair with no real progress in sight, as speculation runs rampant as to why Kim Jong-Un decided not to go to Moscow. US-Japan Relations:…..………………………………………………………………………..11 Strategic Alignment by Michael J. Green, CSIS/Georgetown University, and Nicholas Szechenyi, CSIS Benefiting from a window of political stability, the Abe government continued to focus on the twin pillars of economic strategy and defense policy reform. Bilateral engagement on security, trade, and regional and global issues informed the agenda for the prime minister’s official visit to Washington in late April, the first by a Japanese leader in nine years. Abe also became the first Japanese leader to address a joint session of Congress and relayed the main themes from his summit with President Obama by reflecting on the 70th anniversary of the end of World War II, celebrating the evolution of the US-Japan alliance, and outlining a strategic vision for the future. iii US-China Relations:……..……………………………………………………………………..19 China Makes Great Strides with AIIB and a Great Wall of Sand by Bonnie Glaser, CSIS/Pacific Forum and Jacqueline Vitello, CSIS 2015 opened with high-level exchanges in preparation for the Strategic and Economic Dialogue, scheduled for early summer, and Xi Jinping’s state visit in September. Visits to China were made by Deputy Secretary of State Tony Blinken, Treasury Secretary Jacob Lew, Commerce Secretary Penny Pritzker, and Homeland Security Secretary Jeh Johnson. Chinese State Councilor Yang Jiechi met National Security Adviser Susan Rice in New York. Military exchanges included dialogues, ship visits, joint drills, and video calls. The South China Sea remained a source of friction as evidence mounted that China is building military outposts on reefs in the Spratly Islands. In response to the issuance of the revised US-Japan Defense Guidelines, China voiced concerns and called the alliance outdated. Despite US objections, a total of 57 countries signed up to be founding members of the Chinese-led Asian Infrastructure Investment Bank. China held its annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Congress, announcing an economic growth target of around 7 percent and an increase in its defense budget of 10.1 percent in 2015. US-Korea Relations:...………………………………………………………………………….35 DPRK Nuclear and Missile Threat Looms by Stephen Noerper, The Korea Society The early months of 2015 saw little change in US-DPRK relations while there were several positive developments in US-ROK relations. There were new US sanctions on North Korea over the Sony Pictures cyber-hacking incident and increased concern about North Korean advances in nuclear and missile technology as the US and others continued to criticize the DPRK’s human rights record. Meanwhile, South Korea and the US held their annual military exercises and concluded a new civilian nuclear agreement. Distractions from the positive trajectory in US- ROK relations included the debate over the value of deploying the THAAD system in South Korea and the unfortunate attack on US Ambassador Mark Lippert. US-Southeast Asia Relations:…..……………………………………………………...............45 South China Sea Wariness by Sheldon Simon, Arizona State University Several senior US officials visited Southeast Asia, all emphasizing ASEAN’s importance for the US rebalance policy. The US is building a rotational force deployment capacity in the region along with military assistance to allies and partners, especially for increasing their maritime security capabilities. Washington has also emphasized Vietnam’s importance to the rebalance, currently concentrating on improving coast guard relations. The Indonesian Navy has shown interest in more naval exercises with the US around Natuna. Problems persist in US-Thai relations as the military